Programs that promise
payments that are too low. There are numerous companies out there who attract
people with their lower monthly payments, but this just means that you will have
to pay your debt off for a much longer period.
Take note of the interest
rate. Don’t go into any program without knowing how big your interest rate is.
Before your contract, go through every detail and make sure that you are in
agreement with everything that is stipulated in it. Make sure that your interest
rate is not just an introductory rate that will later be changed to a higher
rate.
Loan add-ons.
There are agencies that will offer you a stack of other services that you might
find attractive and useful. Before agreeing to anything, think it over, as these
additional services and packages will cost you a lot more.
Secure or unsecured loan?
Check your financial capacity and make sure you can make the payments, lest you
could lose your home (with a secured loan). If you are already having a hard
time making ends meet now, seriously consider bankruptcy as an option.
Do your homework.
Don’t just rush into the first agency you see. There are a number of agencies
there that offer various interest rates. It would save you a lot of trouble and
money if you take the time to study every offer you’re interested in.
Here are some questions
you can ask yourself before signing up for a debt consolidation loan:
Are there sign-up fees I
have to pay?
How much is the interest
rate?
How much is the monthly
payment?
How long is the loan going
to be for, and what are the terms?
If I pay extras on the
loan, will there be penalties?
How much is my total
payout going to be if I take this loan?
Another good tip to keep in
mind is to check out Credit Unions. These unions usually have the best rates, so
make sure you check them as well.
